Afya Ltd Cl currently holds roughly 186.16
M in cash with 65.27
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.0.
Our investment recommendation module complements current
analysts and expert consensus on Afya. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Investing in Afya, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Afya along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Afya's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Afya. Your research has to be compared to or analyzed against Afya's peers to derive any actionable benefits. When done correctly, Afya's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Afya.
How important is Afya's Liquidity
Afya
financial leverage refers to using borrowed capital as a funding source to finance Afya ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Afya financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Afya's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Afya's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Afya's total debt and its cash.
Afya Gross Profit
Afya Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Afya previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Afya Gross Profit growth over the last 10 years. Please check Afya's
gross profit and other
fundamental indicators for more details.
Afya Correlation with Peers
Investors in Afya can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Afya. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Afya and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Afya is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Afya for more details
Details
Afya Ltd Cl secures Sharpe Ratio (or Efficiency) of -0.14, which signifies that the company had -0.14% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Afya Ltd Cl exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Afya Ltd Cl
mean deviation of 1.73, and Risk Adjusted Performance of
(0.10) to double-check the risk estimate we provide.
Afya is expecting lower volatility in May
Current market risk adjusted performance indicator falls down to -0.83. Possible price jump? Afya Ltd Cl exhibits very low volatility with skewness of 0.54 and kurtosis of 0.58. However, we advise investors to further study Afya Ltd Cl technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Afya's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Afya's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
Whereas some other entities in the education & training services industry are either recovering or due for a correction, Afya may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 8th of April 2021, our current 30 days buy-or-sell advice on the company is
Hold. We believe Afya is currently
undervalued with
very low probability of distress for the next two years.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Afya. Please refer to our
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